You own 500 shares of a stock that you purchased on margin at a price per share of $20.12.The stock is currently valued at $24 a share.Your broker advised you today that your minimum equity position for this purchase is $4,800 as of today.What is the maintenance margin percentage?
A) 25 percent
B) 30 percent
C) 35 percent
D) 40 percent
E) 50 percent

Question

Quizplus · Accepted Answer

Maintenance margin percentage = $4,800 / (500 × $24) = 40 percent

You Own 500 Shares of a Stock That You Purchased